MMTC-PAMP has called for a more attractive Gold Monetisation Scheme to unlock household gold stocks and increase recycling within India [1, 2].
Bringing dormant gold into the formal economy could reduce the nation's reliance on expensive imports and improve the current-account deficit [1, 2]. It would also allow the country to utilize domestic refining capacity that currently remains under-used [1].
MMTC-PAMP is a joint venture between the state-owned MMTC Ltd and the Swiss refiner PAMP [1]. The company said that a revised policy is necessary to incentivize citizens to move their holdings from home safes into the financial system.
Estimates of the gold held by Indian households vary. One report suggests a stock of 31,000 tonnes [2], while other estimates place the total between 25,000 and 30,000 tonnes [3].
"A more attractive gold monetisation scheme could bring a portion of household gold into the formal market, boost recycling and help revive under-utilised refining capacity," Samit Guha said [2].
The existing Gold Monetisation Scheme was launched in 2015 [3]. However, the program has struggled to gain significant traction among the public. As of November 2026, only 39 tonnes of gold had been mobilised under the scheme [3].
This figure is negligible compared to the tens of thousands of tonnes estimated to be held privately [2, 3]. To further the process of formalization, MMTC plans to auction gold collected under the scheme in five kg bars [4].
By increasing the appeal of the scheme, MMTC-PAMP aims to create a sustainable domestic loop for gold. This shift would move the market away from a heavy dependence on foreign shipments to meet domestic demand [1, 2].
“A more attractive gold monetisation scheme could bring a portion of household gold into the formal market”
The vast gap between India's estimated private gold holdings and the actual amount mobilised since 2015 highlights a deep lack of trust or incentive among households. For the government to successfully reduce its import bill and stabilize the current-account deficit, it must address the psychological and financial barriers that prevent citizens from parting with physical gold.
